Mumbai real estate market tops India’s housing sales in Q3 2025; office rents jump 11% amid steady demand: report
Mumbai’s real estate market recorded residential sales of 24,706 housing units, the highest among all other top cities in India, while the office market witnessed a robust double-digit increase in average transacted rents in the third quarter of 2025, according to a report released by Knight Frank, India, a real estate consultancy firm.
Residential market highlights of Mumbai (Q3 2025)
According to the report, Mumbai continued to lead India’s residential sales chart in Q3 2025, recording the highest sales volume nationwide at 24,706 units, registering a marginal 2% YoY increase. This performance indicates stable end-user demand across the city, the report said.
According to the report, Bengaluru followed after Mumbai with 14,538 units, showing steady demand but a 2% dip in year-to-date numbers.
Delhi-NCR, on the other hand, registered 12,955 units, a 5% decline year-to-date, while Pune saw the sharpest decline, with sales dropping 8% year-over-year.
Among the southern markets, Hyderabad (9,601 units) and Chennai (4,617 units) posted healthy year-on-year growth of 5% and 12%, respectively. Ahmedabad saw a modest 3% annual rise, while Kolkata inched up 2% YoY but remained 7% lower on a YTD basis, the report revealed.
Also Read: Can a developer forfeit a homebuyer’s booking amount if the sale agreement is not signed and the booking is cancelled?
Pricing and launches
According to the report, the average residential prices in the Mumbai real estate market saw a healthy appreciation, climbing by 7% YoY in Q3 2025, driven primarily by sustained traction in the higher ticket-size segments (above ₹1 crore).
New launches in the Mumbai market moderated, dropping by 19% YoY to 19,145 units. This cautious approach by developers was instrumental in limiting the overall national tally of new launches during the quarter, reflecting a preference for capital preservation and focus on project execution, the report said.
Also Read: ₹294 crore in a bulk deal for its staff”>Mumbai real estate: SBI plans to buy 200 two-BHK apartments for ₹294 crore in a bulk deal for its staff
“Mumbai’s residential market continues to drive residential sales, recording the highest sales volume in India at 24,706 units. The market is primarily driven by end-users committed to premiumization. The 7% year-on-year price appreciation underscores the steady demand,” said Gulam Zia, senior executive director, Research, Advisory, Infrastructure and Valuation, Knight Frank India.
Office market
According to the report, despite a pronounced base effect from Q3 2024, Mumbai’s office market average transacted rents grew by a healthy 11% YoY, reflecting sustained demand for premium Grade A spaces across the city’s key business districts.
This is the thirteenth consecutive quarter in which year-on-year rent growth has been stable or positive for Mumbai, according to the report.
Office transaction volumes for Mumbai stood at 0.18 million sq m (1.9 million sq ft) in Q3 2025. While this represents a 27% YoY decline, Mumbai, along with Bengaluru and NCR, accounted for half of the total volumes transacted in India, underscoring its continued relevance as a major commercial hub.
Also Read: Mumbai real estate: From Anjali Tendulkar to Gauri Khan, celebrities and HNIs invest in homes for their staff
The city saw 0.14 million sq m (1.6 million sq ft) of new office space delivered during the quarter, marking a significant 94% YoY growth in completions. This substantial delivery comes on the back of development activity consistently lagging behind transactions since the beginning of 2023.
“The stability in Mumbai’s commercial sector is undeniable.” With average transacted rents growing by a healthy 11% year-on-year, we have now seen thirteen consecutive quarters of stable or positive rental growth. This sustained performance, coupled with a significant 94% surge in new completions, signals a healthy and mature market where demand for high-quality Grade A space remains robust, confirming Mumbai’s status as a premier commercial destination,” Zia said.
